Sponsor Statement for House Bill 407

"An Act relating to repayment of teacher scholarship loans"

The Teacher Scholarship Loan Program provides incentive to Alaska high school graduates to pursue teaching careers in rural Alaska elementary and secondary schools. Participants in the program are eligible to have their loan payments forgiven-- either partially or in their entirety--based on the number of years they teach at a rural elementary or secondary school.

Sometimes, however, individuals are prevented from fulfilling the requirements to obtain payment forgiveness because of circumstances beyond their control. House Bill 407 addresses this type of situation. It provides that an individual who, after participating in the loan program, is diagnosed with a medical condition for which treatment is available only in an urban area, may still qualify for loan payment forgiveness so long as that individual is teaching in an elementary or secondary school.

Provisions already exist for payment deferments and extensions because of hardship and total loan forgiveness because of total disability. Unfortunately, there are times when individuals who are able to continue working are not able to work in a rural area because of required medical treatment. They would like to fulfill the requirements by working in rural areas but, through no fault of their own, cannot. This legislation remedies this situation without damaging the integrity of the program.

HB407/SS/2/18/98